
Buying the house day by day
Deposit is one of the biggest obstacles for young couples or singles who want to buy a house of their own. Especially if you are looking to buy a property that reflects your expectations. However, there is a way to cover that down payment required by banks, which is often lacking. It is, in essence, to pay a slightly higher rent and thus start buying your own home, day after day. But to get a better explanation of how ‘rent to buy’ works, we interviewed Sabrina Tilli, director of Omnis Vision, a consulting firm based in Bellinzona.
What is ‘rent to buy’ and why can it be a solution for becoming popular?
“It is a formula that facilitates the purchase of a property, especially for those who have a good income but do not have enough deposit to meet the banks’ demands. Basically, the buyer signs two contracts: a right to buy and a rental contract. The rent is paid for a defined period with the seller, normally between 3-5 years, part of which goes to cover the missing equity. This allows you to reserve the flat, live in it and gradually accumulate the necessary equity for the final purchase.”
So how does this system facilitate access to real estate?
“The big advantage is that the buyer does not immediately have to have the 20-25% of the purchase price that banks usually require as equity capital. For example, if a couple only has 10-15% of the necessary capital, with ‘rent to buy’ they can still reserve the house, live in it, and in the meantime accumulate the remaining missing capital through increased rent. This formula prevents people from having to drain their savings to reach the required threshold.”
What happens if the buyer decides to stop the purchase process?
“If the buyer decides not to proceed with the purchase at the end of the period established, the capital paid is not reimbursed and serves as a conventional penalty, as protection for the owner, who could still return to the house. It is a bilateral agreement that must be clear from the beginning, with all the case analyses to assess the solvency of the buyer and economic conditions.”
Are there also advantages for the seller?
“Yes, absolutely. The seller benefits from continuous profitability thanks to the rental fee and does not have to sell the property immediately, which results in a tax advantage, particularly on the reduction of the real estate gains tax rate. This formula is particularly interesting for owners who wish to sell their real estate but who do not have an immediate need for liquidity, as the collection is deferred.”
Concrete examples that you have experienced?
“Omnis Vision is a consulting and project management company active in favour of the enhancement of natural and built heritage. In this specific case, our consultancy focuses on accompanying the property owner in evaluating this option in terms of feasibility and sustainability. We have had the opportunity to explore this method of disposal in Bulle, in the canton of Fribourg, with which dozens of flats have been successfully sold. In Ticino, we have recently partnered with Galli Immobiliare to apply this purchase method to their various projects, both existing and new constructions. With Galli Immobiliare we are developing a model that aims to make access to property easier, both bureaucratically and financially.
Will the future see rent to buy become established?
“The Rent to Buy model has existed for some time and I believe it has enormous potential, especially in an increasingly difficult real estate market with stricter banking rules. It is a solution that offers flexibility to both buyers and sellers and, with the right support and information, can become an increasingly popular choice. It is a form that favours the new generations, so it also has a social and cultural value.”
Sabrina Tilli
Year of birth: 1987
Profession: Director of consultancy firm
After attending the Business School in Bellinzona, he worked as a private client advisor in the banking sector from 2008 to 2014. In that year she entered the world of architecture studies, becoming assistant director of ‘atelier ribo+ in Cadenazzo. In 2019 she started working on the consulting project of Omnis Gestioni, now evolved into Omnis Vision, Consultancy and project management companies of which she is the director.
